Russian president gives no clear answers to business's concerns - experts
RIA-Novosti
Moscow, 21 October: The main subjects discussed at today's meeting between Russian President Dmitriy Medvedev and businessmen were the post-crisis development of the economy and its modernization, and a decrease of the government's share in the economy, for instance, flotation of some state corporations. However, several issues important for business were not discussed, according to experts interviewed by RIA Novosti.
Experts believe businessmen are reluctant to invest in high technologies, and consumers are not interested in buying modern goods at a higher price.
The president's appeal to complain about corruption in courts to the law-enforcement bodies will hardly find understanding either, experts believe.
Anti-crisis measures
One of the main subjects discussed at the meeting between the president and representatives of the Russian Union of Industrialists and Entrepreneurs (RUIE) were the government's anti-crisis measures and transition to the post-crisis development of the economy. (passage omitted)
Recently there was a lot of talk about the state corporations' inefficiency, expert at the Centre of Political Situation Pavel Salin said. "Something must be said for their flotation, if it happens of course," he said, adding that businesses might be interested in buying the shares.
Modernization is hard work
The state is expecting business to invest on the internal market. (passage omitted) The state as the owner of natural resources is entitled to expect that the most modern and safe technologies will be used in the production sector, the president said.
Technical modernization is great, Salin said, however all costs will fall on companies and their heads understand this very well. "Therefore it is quite possible that they will pay lip service to the initiatives from the top and then will quietly drop them," the expert believes. (passage omitted)
Businessmen start with banks
A gradual decrease in state support for banks was the key idea put forward by large businesses.
In the next few years banks must stop accepting the government's large-scale support, Vneshtorgbank chairman Andrey Kostin believes. First, state intervention in the banking system must be reduced - in Vneshtorgbank alone, since September 2009, the state has increased its share from 77.5 to 85.5 per cent.
Kostin believes the banking system must not play the role of the economy's doctor and businesses' saviour, by giving them loans and taking considerable risks, which reduce their profit and capital. (passage omitted)
Who will deal with judge taking bribes?
At the meeting, the businessmen complained about the growing number of middlemen in court cases and imperfections of the antimonopoly laws. In reply, Medvedev urged them to report to the law-enforcement bodies about any facts of corruption in courts. (passage omitted)
Anticorruption measures must be systematic, numerous and designed for decades ahead, Salin believes. "What Medvedev said is the first of twenty steps. In the near future these appeals will have no significant effect - just remember how it was with officials' income declarations. It is impossible to overcome corruption without systematic fight," the expert believes.
A stitch in time
The expert suggested that the state and businessmen view commercial activity differently.
The businessmen would have been happy to hear the president's announcing cuts in taxes and checks at companies, but this did not happen, Salin said.
On the whole, the meeting's agenda met businessmen's interests, but it is important to understand that the president met only representatives of major companies and banks, and the hopes of small and medium-size businesses could be different, a member of the Council for National Competitiveness, Anna Zelentsova said. The latter cannot speak with the president but daily meet quite different representatives of the state.
It is important that the right words said by the president should reach small business and all branches of power, she said.
It is very important that the president should speak with businessmen while preparing the next address to the Federal Assembly, Zelentsova said. "I think that many things said at the meeting will be included into the speech and will acquire some concrete reference points," she said.
